"This partnership reflects the continued focus of Amazon and Netflix on expanding their advertising businesses. This deal strengthens Amazon's role in advertising and also points to its growing position as a key backend service provider. With Prime Video boasting more than 300 million ad-supported viewers monthly, AMZN is becoming a one-stop shop for advertisers looking to reach a massive audience."
"This collaboration is set to begin in the fourth quarter of 2025 and will cover 11 countries, including the U.S., U.K., Canada, Germany, Japan, and Brazil. At the same time, Netflix is developing its own in-house ad-tech platform and plans to introduce new ad formats, including interactive mid-roll and pause ads that use generative AI in 2026. President of Advertising at Netflix, Amy Reinhard, said the deal aligns with Netflix's commitment to give advertisers more flexibility in their ad purchases."
Amazon and Netflix will enable marketers to purchase ad space on Netflix via Amazon's demand-side platform (DSP) beginning in the fourth quarter of 2025 across 11 countries. The DSP connects advertisers with consumers and the partnership expands Amazon's role as a backend ad service while Netflix continues building in-house ad technology. Prime Video reports over 300 million ad-supported monthly viewers. Netflix plans new ad formats, including interactive mid-roll and pause ads using generative AI in 2026. The Trade Desk stock fell after the news, and Amazon holds a Strong Buy consensus with a price target implying roughly 13.7% upside.
Read at TipRanks Financial
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